Retirement village operator Ryman Healthcare today reported a record realised profit of $36 million for the first half year, up 25%, due to apartment demand and expansion.The Christchurch-based company, the largest listed investor in retirement villages,
Retirement village operator Ryman Healthcare today reported a record realised profit of $36 million for the first half year, up 25%, due to apartment demand and expansion.
The Christchurch-based company, the largest listed investor in retirement villages, had a net profit of $52.5 million when unrealised gains were added, up 29%, for the first half year ended September 30.
"The significant growth in profit is largely due to us completing several new apartment blocks over the past six months, which have all proved very popular," said Ryman chairman David Kerr.
During the half Ryman completed 190 retirement village units and 117 resthome beds across five existing villages. The company also began works on its new Dunedin and Gisborne villages, and acquired a site for a new village in Tauranga.
"We are fortunate to be in such a strong financial position, as it allows us to continue to invest in new aged care facilities in New Zealand, and at the same time embark on development of our first village in Australia."
Dr Kerr said Ryman was on track to reach its target of 15 percent growth in earnings per annum for this year.
With statistics New Zealand estimating Kiwis aged 75 plus will more than double from 250,000 to 516,000 over the next twenty years, Ryman is well positioned to cater for the accommodation and care needs of this group, the company said.
Ryman currently owns 22 villages nationwide, which each offer a combination of retirement living and resthome care.
Ryman shareholders will receive a 26 percent increase in their half year dividend worth 3.4cps, paid on December 10.
Shares closed on Wednesday at 216.
